Buffett forges record $37.2bn takeover of PCC

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Warren Buffett has agreed to acquire a US maker of aircraft components in a deal valued at $37.2 billion (£24bn) – a record for his Berkshire Hathaway investment vehicle.

The veteran investor, dubbed the Sage of Omaha for his approach to value investing, said Oregon-based Precision Castparts (PCC) was “the supplier of choice for the world’s aerospace industry, one of the largest sources of American exports”.

Warren Buffett has agreed a deal for aircraft firm PCC. Picture: Getty

Warren Buffett has agreed a deal for aircraft firm PCC. Picture: Getty

The deal is expected to complete in the first quarter of next year, subject to approval from competition regulators.

PCC chairman and chief executive Mark Donegan said: “We see a unique alignment between Warren’s management and investment philosophy and how we manage PCC for the long term. We believe that as part of Berkshire Hathaway, PCC will be exceptionally well positioned to support our customers’ needs into the future.”

PCC, which makes parts for the aerospace, energy and industrial sectors and counts the likes of Airbus, Boeing, GE and Rolls-Royce among its customers, will remain headquartered in Portland, where it was founded more than 60 years ago. The business employs more than 29,000 people around the world and owns Caledonian Alloys, a Livingston-based specialist recycling firm that processes cobalt, nickel and titanium alloys for use in turbines and aero engines.

Berkshire Hathaway was involved in the merger of food giants Heinz and Kraft that completed last month and also owns stakes in Coca-Cola and IBM.